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For 2004, both my wife and I can not contribute any amount to Roth IRA. So we are thinking about opening non-deductable traditional IRA.

Before you do, think about what you plan to invest the $$ in. All taxable withdrawals from IRAs are taxed as ordinary income, regardless of the source of the earnings. With the special treatment afforded long-term capital gains (which aren't taxed until you sell) and dividends, it may be to your advantage to invest through regular taxable investment accounts.

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